This bill establishes two tax deductions for veterinarians under the individual income tax in Iowa. The first deduction allows licensed veterinarians participating in the rural veterinarian loan repayment program to subtract income received from loan repayments, with limits set at $15,000 per tax year and a total of $60,000 across all tax years, not exceeding the outstanding eligible loan amount. The second deduction permits veterinarians to deduct the total interest paid on qualified education loans for attending an accredited veterinary college, provided they practiced veterinary medicine in Iowa during the tax year. However, this interest deduction is not available if the veterinarian is also receiving loan repayment under the rural program in the same year.

Additionally, the bill mandates that the Department of Revenue adopt rules to administer these deductions, including specifying the minimum number of days a veterinarian must practice in Iowa to qualify for the student loan interest deduction. The provisions of this bill are retroactively applicable to tax years beginning on or after January 1, 2026.

Statutes affected:
Introduced: 422.7